According to industry sources, UMC plans to invest more than NT$100 billion to build its second 300mm wafer fab in Singapore with a monthly production capacity of at least 20,000 to 30,000 wafers.

UMC’s first Singapore fab, the Fab 12i, is located in Pasir Ris Wafer Park. Mass production began in 2004 with a monthly production capacity of 50,000 wafers and a manufacturing process ranging from 0.13 microns to 40nm. Products include FPGAs and wireless communication chips.

UMC responded to this by saying that it has been evaluating plans for the construction of the new fab, but has not yet decided on the location.

According to industry insiders, the foundry capacity has been in short supply for more than a year, and UMC has raised its prices twice in May and July. It is not surprising that it has decided to build a new fab at this stage.